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France enacts special law to fund the state in absence of budget
Paris, December 27, 2025 — President Emmanuel Macron has promulgated a special law allowing the French government to continue financing the state for 2026 despite the absence of an official budget, according to the Journal Officiel on Saturday.
This legislative tool, previously used after the fall of the Barnier government in 2024, temporarily ensures public funding until Parliament resumes discussions on the 2026 finance bill in January. The law, adopted unanimously by Parliament last Tuesday, maintains taxes and state allocations at 2025 levels and prevents a potential government shutdown. However, it does not authorize new taxes or additional spending, including in defense, which remains a priority due to perceived Russian threats.
The special law was introduced after lawmakers from the National Assembly and the Senate failed to reach an agreement on the 2026 budget. Prime Minister Sébastien Lecornu expressed confidence that Parliament would ultimately approve a formal finance bill, citing ongoing dialogue with the Socialist Party, which allowed for the adoption of the 2026 Social Security budget.
Parliament will reconvene in early 2026 to continue budget negotiations. France faces rising public debt, and the inability to approve a full budget leaves the trajectory for deficit reduction unresolved.
